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Third Quarter 2012 Results

CTC Media, Inc.

Investor Presentation

A Leading Independent Broadcaster in Russia

1

From Private TV Network to Public Media Holding

2

1989 1994 1996 2002 2005 2006 2008 2009 2010 2011 2012

CTC Media was

founded as StoryFirst

Communications

Launch of CTC

Network

Launch of CTC

Network Modern Times Group

became a shareholder

of CTC Media

Launch of

Domashny Network

Initial Public Offering

on NASDAQ

Acquisition of the DTV

group

Acquisition of

Channel 31 in

Kazakhstan

CTC Media enters

Moldova free-to-air TV

market

Acquisition of

Costafilm and Soho

Media production

companies

Launch of CTC-

international in

Kazakhstan,

Kyrgyzstan,

Armenia, Georgia,

Azerbaijan,

Thailand

Uplink of СTC-

international to the

HOT BIRD satellite

(Europe, Middle

East, North Africa

and Central Asia)

Launch of CTC-international

in Germany and the Baltics

Telcrest Investments

Limited acquired a 25%

stake in СTС Media from

Alfa Group

Costafilm and Soho Media

united into Story First

Production

DTV is rebranded to Peretz

Launch of CTC-

international in

USA

Launch of CTC-

international in

Israel

Establishment of

CTC Media’s

internal advertising

sales house

‘Everest Sales’

Launch of

‘Videomore’ online

social television

network

NEW MEDIA

CTC-INTERNATIONAL (PAY-TV)

AD SALES

CONTENT PRODUCTION

FREE-TO-AIR (CIS)

We Fully Capture the Value Chain by Being a Vertically Integrated TV Broadcaster

3

FREE-TO-AIR ( RUSSIA)

Note: (*) DTV Network operates under Peretz brand name & logo starting from October 2011

CTC – target audience All 6-54 (All 10-45 starting 2013)

Domashny – target audience Females 25-59

Peretz – target audience All 25-59 (All 25-49 starting 2013)

Free-to-air

TV ad maket growth1

Kazakhstan Channel 31

Moldova СTС Mega

Story First Production

Internal advertising sales house Everest

International version of CTC channel

Various digital projects

Online video portal Videomore.ru

Women’s portal Domashniy.ru

We Operate in Attractive Markets

4 Sources: Video International, Russian Association of Communications Agencies, ZenithOptimedia, CIA World Factbook, Rosstat, Russkiy Mir Foundation

Note: (*) All TV Ad Markets figures are net of VAT

Kazakhstan Population = 16.3 million

2011 TV Ad Market = US$ 120 million*

Russian-speaking population = 12.3 million

Kyrgyzstan Russian-speaking

population = 2.5 million

USA Russian-speaking


Germany Russian-speaking

population = 6 million

Russia Population = 142 million

2011 TV Ad Market = US$ 4.4 billion*

Israel Russian-speaking


Moldova Population = 3.6 million

2011 TV Ad Market = US$ 16.6 million*

Baltic states Russian-speaking

population = 4 million

Since February 2012

CTC-International

is available on the HOT

BIRDTM 8 satellite

(W/E Europe, North Africa,

Middle East and Central Asia

coverage)

Thailand Russian-speaking tourists = 0.8 million (2011)

Armenia, Georgia, Azerbaijan Russian-speaking population=10.4 mln

We Are the Largest Independent FTA-Broadcaster in Russia

5

Combined audience

shares, %

(all 6-54 demographic)

Source: TNS Russia

#2 up from #4

in 9M 2011

22.7

14.815.6 15.5

6.9

4.7

3.3

22.4

14.714.2

12.0

9.9

5.1 4.7

Gazprom-Media СTС Media VGTRK (Rossiya) Channel One National MediaGroup

Prof-Media UTV Russia Holding

9M 2011

9M 2012

6

Growth Company Operating in a Dynamic Market

USA Japan China Brazil Russia Germany Italy France

131

190

275

2011 2015F 2020F7

US

$ b

ln

4.4

19.2

11.4

10.9

5.4 5.1

4.9

58.0

4.5

Russian Ad Market Has Significant Potential for Further Development…

Russian TV ad market was #9 in the world

and #5 in Europe in 20111…

…and is expected to become # 5 in the world

and #1 in Europe in 20141

US

$ b

ln

65.5

4.9

13.7

5.9 5.8

4.7

16.2

20.4

Free-to-air TV ad market growth1

US

$ b

ln

RU

B b

ln

1.4

4.7

3.0 3.6

4.4

3.3

10.2

5.8

7.0

8.9

2004 2008 2009 2010 2011

TV Ad Market Total Ad Market

Russian TV ad market forecast2

Sources: (1) Zenith Optimedia, Company’s estimates Note: All TV Ad Markets figures are net of VAT

(2) Video International

1.4

1.7

0.9

1.2

0.90.9

0.80.8

0.7

0.6 0.6

1.8

1.4

1.11.0

1.0

0.80.7 0.7

0.60.5 0.5

Slo

ve

nia

Bu

lga

ria

Au

str

ia

US

A

Be

lgiu

m

UK

Ge

rma

ny

CE

E A

ve

rag

e

Russia

Ukra

ine

Po

lan

d2008 2011

8

…Due to Relatively Low Ad Spend as % of GDP and Underleveraged Consumer

Ad spend as % of GDP¹

Sources: (1) ZenithOptimedia, Company’s estimates

(2) Eurostat, National Central Banks, 2011

Retail and mortgage loans as % of GDP2

37%

30%

21% 21% 19%15%

12%

6%3%

8%

8%

14%9%

5% 15%

13%

12%

7%

Esto

nia

Latv

ia

Po

lan

d

Cre

ch

Re

p

Lithu

ania

Hun

gary

Bu

lga

ria

Rom

an

ia

Russia

Household loans excl mortgages, % of GDP Mortgage loans, % of GDP

9

TV is the only medium with truly national reach

Important social and cultural platform

More free-to-air networks than in other countries

High quality free-to-air content offering

TV Is the Most Attractive Advertising Medium in Russia

Ad spend in Russia by media segment1 (%)

FY 2011 cost per thousand in Russia (US$)²

H1 2011 TV cost per thousand (US$)²

2.1

8.0

9.0

11.0

17.0

Russia

Asia

Western Europe

Eastern Europe

North America

1.8

2.9

4.9

5.4

6.0

TV

Radio

Internet

Newspapers

Magazines

43%

1%

31%

18%

6%

0.4%

48%

19%

14% 13%

4%2%

46%

TV Internet Press Outdoor Radio Other

2004 2012F 2020F

Sources: (1) Russian Association of Communication Agencies, Video International

(2) Initiative Media

2.7

1.7

0.9

0.5

2.3

2.93.1

2.42.1

0.7

China Russia Brazil India USA Japan

2009 2015E

10

Internet Consumption Is Growing…

2011: Russia is #1 in Europe by number of Internet users

2011: Internet Ad market growth in Russia (USD, mln)

Increase of time spend online (hours per day)

2011: Broadband penetration by country

50.8 50.1

42.337.2

23.7

Russia Germany France UK Italy

Internet users, mln

371

599510

882

1,422

2007 2008 2009 2010 2011

75% 75% 75%

38% 37%

USA Western Europe UK Eastern Europe Russia

Sources: ComScore, Boston Consulting Group, Zenith Optimedia, AKAR, Mindshare Interaction, ITU

186183 184 185 187 188

192 190

196

2003 2004 2005 2006 2007 2008 2009 2010 2011

203

217

9M 2011 9M 2012

11

…but Not at the Expense of TV Usage

Average linear TV viewership globally is increasing

Europe Russia

Min

ute

s p

er

da

y*

222227 228

2009 2010 2011

(*) All 4+ demographic

Source: Eurodata TV Worldwide

Min

ute

s p

er

da

y*

Min

ute

s p

er

da

y*

12

We Continue to Deliver Strong Top and Bottom-line Growth…

181

273

427

532

730

574

680

766

2004 2005 2006 2007 2008 2009 2010 2011

(Comparable-basis) total operating revenues***

71

104

174

220

280

211221

247

39%38%

41%

41%38%

37%

32% 32%

22%

26% 26% 27%

21%16%

21% 20%

15%

25%

35%

45%

0

50

100

150

200

250

2004 2005 2006 2007 2008** 2009** 2010 2011**

OIBDA* OIBDA margin*, % Peers average OIBDA margin****,%

Notes: (*) OIBDA is defined as operating income before depreciation and amortization (exclusive of amortization of programming and sublicensing rights. OIBDA margin is defined as OIBDA divided by total operating revenues. Both OIBDA and OIBDA margin

are non-GAAP financial measures (see reconciliations on page 46)

(**) 2008 OIBDA and OIBDA margin are adjusted to exclude a $232.7 million charge arising from the impairment of the intangible assets of DTV Group in Russia, Channel 31 in Kazakhstan and a broadcasting group in Moldova; 2009 OIBDA and

OIBDA margin are adjusted to exclude an $18.7 million charge arising from the impairment of the broadcasting licenses in Russia and a $28.6 million stock-based compensation expense recognized in conjunction with the previously announced

settlement, DTV brand name by CTC Media of litigation brought by it against its former CEO, 2011 OIBDA and OIBDA margin are adjusted to exclude a $106.4 million charge arising from the impairment of several regional broadcasting licenses

and the Peretz Network goodwill; (see reconciliations on page 44-45)

(***) Comparable-basis operating revenues are non-GAAP financial measures provided in order to facilitate period-to-period comparisons of CTC Media’s results following the implementation of the new model of advertising sales starting from 2011 (see

reconciliations on page 47)

(****) Following companies are included in European peers average OIBDA margin calculations: CME, TVN, S.A. Modern Times Group, Antena3, ITV plc, Metropole Television, Mediaset, ProSiebenSat, Mediaset Espana, TF1

US

$ m

ln

US

$ m

ln

…and to Diversify Our Lines of Business

13

9M 2012

Russian FTA

Broadcasting

93%

69% 14%

10%

Sublicensing

3%

CIS

3%

New Media

0.3%

CTC-

International

0.5%

2004

Russian FTA

Broadcasting

100%

14

Strategic Focus on Long-Term Growth and Diversification

We Have Clear Strategic Priorities

CO

NT

EN

T

DISTRIBUTION PLATFORMS:

• Enhance existing platforms

female portal

comedy portal

• Develop distribution

collaboration (VK, Youtube)

• Be available on all screens

DIVERSIFICATION:

• iVas on existing platforms

• Games

• Transmedia branded

entertainment content

BR

OA

DC

AS

TIN

G

• Stabilize audience

share

• Improve audience

profile

• Grow audience

and market shares

• Grow audience

and market shares

• Expand to markets

with Russian-

• speaking audiences

• Build library

• Develop in-house

production

• Invest in ideas

development

• Increase production

volumes

• Create strong brands

Up to 20%

of CTC Media channels’ programming grid

(from ~10% in 2011)

Content is king…. Distribution platform is queen 15

CO

NT

EN

T

NE

W M

ED

IA

We Focus on Developing and Creating Local Content

16

Long-term relationships with

large independent producers

Amedia

YBW

Good Story Media / Lean-M

• Stable and predictable pricing

• Right of first look for new products

• Proven track record

Discover new third

party partners

Karo Production

Sputnik Vostok Production

• Diversification of content suppliers

• Discovering new creative

talents & ideas

In-house production

• Securing all rights to the own content

• Full control over production costs &

processes

• ~ 50 projects currently under

development 16

More Original Ideas Are Generated by Our Enhanced Internal Creative Team

17

49 titles have been presented

to channels

Totally titles in

development*

1 titles under initial

development

Titles in full scale production – 23

Pilots in production – 10

Titles under development – 16

7 times more projects in in-house development compared to end of Q3 2011

Note: (*) as of June 30, 2012

50

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4 9 14 19 24 29 34 39 44 49 54 59 64 69 74

Advertisers' demand CTC audience demographic profile

18

CTC Adjusts Its Target Audience to More Commercially Attractive Demographic

Sources: TNS Gallup Media, TV Index, H1 2012

~80% of

advertisers’

budgets allocated

to “All 10-45”

demographic

6 10

45

54

2013 Target Audience


0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74

Advertisers' demand Peretz audience demographic profile

19

Peretz Adjusts Its Target Audience to More Commercially Attractive Demographic

~70% of

advertisers’

budgets allocated

to “All 25-49”

demographic

Sources: TNS Gallup Media, TV Index, H1 2012

25

49 59



2.0

2.6

9M 2011 9M 2012

3.1

3.7

9M 2011 9M 2012

20

Domashny and Peretz Are Benefiting from Fragmentation of Russian TV Market

Audience shares, all 6-54 demographic

Top 3 state-controlled channels

1st tier channels

2nd tier channels

Channels’ target demographics, %

Notes: top 3 state-controlled channels: Channel One, Rossiya 1, NTV; 1st tier channels: CTC, TNT, Ren-TV;

2nd tier channels: TV-3, Domashny, Peretz, Rossiya K, Channel 5, Rossiya 2, Euronews, Zvezda, MTV, Rossiya 24, Muz TV, 2x2, TV Center, Disney

10%

20%

30%

40%

50%

60%

2004 2005 2006 2007 2008 2009 2010 2011 9M 2012

W 25-59 All 10-45

10.7 11.0

8.9 8.79.9

12.112.7

10.2 10.1

11.5

FY 2011 Q1'12 Q2'12 Q3'12 Sep'12

2.8

3.13.3 3.3

3.73.8

3.6

Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12

2.02.1

2.0 2.0

2.6 2.6 2.6

Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12

All 25-59

21

Kitchen (From 22.10.12)

Average share 16.1%1 (19.6% in All 10-45)

Maximum share 16.7% (20.8% in All 10-45)

Voroniny (01.10.12 - 18.10.12)

Average share 10.1% (11.9% in All 10-45)


While the fern blooms (01.10.2012-18.10.2012)

Average share 10.9% (13.1%i n All 10-45)

Maximum share 12.6% (15.1%i n All 10-45

Boarding School (03.09.12 - 27.09.12)

Average share 13.4% (16.5% in All 10-45)


Road Wars

Average share – 2.9%3

Maximum share – 5.0%

Jokes (Anecdotes)

Average share – 2.9%


What’s up?



Wordplay (Kalambur)



Third Season (From 01.09.2012)

Average share – 12.1%2


Note:(1) in CTC target demographic All 6-54 Note:(2) in Domashny target demographic All 25-59 Note:(3) in Peretz target demographic All 25-59

All 6-54

Positive Audience Share Momentum for Smaller Channels in 2012

Our Evolving Business Model…

22

Advertising sales

structure since 2011

Advertisers

Advertising Agencies

Internal Sales Houses External Sales Houses

Everest Sales RTR-Media Gazprom-Media / Alkasar Video International

Consultancy services

…Enables Us to Capture Further Opportunities

23

More control

over the sales

process

Lower cost of

sales as % of

revenues

Mastering

internal

expertise in

direct sales

Bundling sales

with additional

options,

including

non-FTA

Individual

approach to

each client and

customized

offerings Working

directly with

advertisers and

media agencies

24

Stable Consumer Goods Client Base with Both Large Multi-National and Local Advertisers

Ad spending on CTC Media’s channels by category

* ■ Vast majority of CTC Media’s advertisers are basic

consumer goods focused

■ CTC Media’s advertisers’ budgets split:

80% multinationals, 20% local companies

■ Ad revenue concentration is stable:

42% of budgets came from top 10 clients vs

40% in 9M 2011

■ Growth from auto and finance categories in 9M 2012

Notes: (*) National advertising sales for CTC, Domashny and Peretz Networks

9M 2011 9M 2012

1 Food and beverages 28% 29%

2 Cosmetics and personal care products 16% 18%

3 Other goods 17% 15%

4 Pharmaceuticals and vitamins 10% 11%

5 Telecoms 7% 8%

6 Beer 6% 4%

7 Auto 3% 4%

8 Detergents 2% 4%

9 Appliances 8% 3%

10 Retail 2% 3%

11 Finance 1% 2%

Developing in Attractive CIS, International and New Media Markets

25

11.0

12.6

17.8

15.5

FY 2009 FY 2010 FY 2011 9M 2012

Revenue OIBDA margin

26

We Are Strengthening Our Market Positions in the CIS

Channel 31, Kazakhstan (all 6-54 demographics) Significant growth in CIS Segment revenue and OIBDA margin

US

$ m

ln

Targ

et

au

die

nce

sh

are

, %

-20.2%

4.3%

20.2%

+30%

y-o-y

11.2

15.2 15.3

FY 2010 FY 2011 Q3 2012

27

Plus We Continue to Expand Internationally…

Thailand July 2012 – Thai Media Export cable network

Armenia

Georgia

Azerbaijan

May 2012 – Caucasus cable networks 10.4 mln

Kyrgyzstan April 2012 – Europe-Asia cable and satellite network 2.5 mln

Europe

North Africa Middle East

Central Asia

February 2012 – uplink service HOT BIRDTM

Kazakhstan February 2012 – Digital TV; Icon TV 12.3 mln

Baltic States October 2011 – Viasat Broadcasting 4 mln

Germany March 2011 – Kartina TV IPTV 6 mln

Israel June 2011 – Hot; Yes 1.5 mln

USA

December 2009 – Dish

May 2011 – Time Warner; RMG

October 2011 – Cablevision 3.5 mln

Increasing CTC Media’s international brand awareness & value through CTC-international

Total Russian-speaking population 40.2 mln

Russian-speaking

population

28

…and Enter New Platforms to Be Wherever Our Viewers Are

29

…on the Way to Become a Leading New Media Player among Russian TV Companies

Note: (*) Videomore average monthly unique visitors in 9M 2012; TNS Web Index IStar, Russia, cities 100 000+, All 12-54

(**) From CTC, Domashniy and Peretz

(***)Domashniy portal average monthly unique visitors in September 2012

30

Strong and Flexible Financial Position

31

9M 2012 Financial Highlights

2011 2012 in USD in RUB 2011 2012 in USD in RUB

Total operating revenues $159,578 $162,009 2% 12% $529,602 $540,713 2% 10%

Total operating expenses (before non-

recurring items)(116,217) (123,554) 6%

17%(388,568) (403,165) 4% 12%

Total operating expenses (133,060) (206,057) 55% 71% (405,411) (485,668) 20% 29%

Adjusted OIBDA 48,141 43,366 -10% -1% 153,959 152,599 -1% 7%

Adjusted OIBDA margin 30.2% 26.8% 29.1% 28.2%

OIBDA 31,298 -39,137 -225% -238% 137,116 70,096 -49% -45%

OIBDA margin 19.6% -24.2% 25.9% 13.0%

Adjusted net income attributable to

CTC Media, Inc. stockholders29,867 27,522 -8% 1% 91,127 94,190 3% 12%

Adjusted diluted earnings per share $0.19 $0.17 -11% 1% $0.58 $0.60 3% 11%

Net income/(loss) attributable to CTC

Media, Inc. stockholders16,393 (38,480) -335% -359% 77,653 28,188 -64% -61%

Diluted earnings per share $0.10 ($0.24) -340% -364% $0.49 $0.18 -63% -60%

Nine Months

Ended September 30, ChangeThree Months

Ended September 30, Change

32

9M 2012 Balance Sheet and Cash Flow Highlights

32

Consolidated Balance Sheet Highlights Consolidated Cash Flow Highlights

(US$ mln)

As of December 31,

2011

As of September 30,

2012

Cash and cash equivalents 12.3 24.0

Short-term investments 117.2 80.1

Total assets 893.1 887.3

including goodwill 164.4 173.8

including broadcasting licenses 159.4 84.6

including programming rights 199.1 239.7

Working capital1 197.1 241.9

Total debt (bank overdraft) 16.9 7.8

Stockholders’ equity 697.2 697.3

Net cash position2 112.6 96.4

Notes: (1) Working capital = current assets - current liabilities

(2) Net cash position = cash and cash equivalents + short-term investments - total debt

(3) Free cash flow = cash flow from operating activities - acquisitions of property and equipment and intangible assets

(US$ mln) 2011 2012

Cash at beginning of period 59.6 12.3

Net cash provided by operating activities 57.0 57.0

including acquisition of progr. and sublic. rights (254.0) (272.2)

Net cash used in investing activities (1.9) 26.9

including acquisition of busineses (24.5) (2.7)

including CapEx (16.0) (9.4)

including receipts from/(investments in) deposits (38.6) (39.0)

Net cash used in financing activities (59.2) (72.0)

Cash at end of period 56.8 24.0

CapEx (16.0) (9.4)

CapEx as % of total revenue 3.0% 1.7%

Free cash flow3 41.0 47.5

Nine months

ended September 30,

117

158

186

133

186

116

67% 72% 66% 63%

84%

47%

0

20

40

60

80

100

120

140

160

180

200

2006 2007 2008 2009 2010 2011

Operating Cash Flow % of OIBDA converted

Cash investments

in content up y-o-y

43% ($108 mln)

46%

36%33%

27% 27% 27%

2006 2007 2008 2009 2010 2011

33

High Levels of Cash Conversion and Return on Capital Employed

2006-2011

average

ROCE: 33%

% of OIBDA Converted to Operating Cash Flow Return on Capital Employed*

Note: (*) ROCE excludes one-off non-cash asset impairment charges recognized in 2008, 2009 and 2011.

US

$ m

ln

54% 56%

40% 42%

30% 31%

22% 23%

8% 8%

6%6%

4% 1%

3%1%

3% 4%

2% 3%

9M 2011 9M 2012 9M 2011 9M 2012

Depreciation & amortization

Stock-based compensation

Direct operating expenses

SG&A expenses

Amortization of programming &sublicensing rights and own productioncost

34

Operating Expenses

as % of total operating expenses as % of total operating revenues

$116.2 mln $123.6 mln $403.2 mln $388.6 mln

To Conclude…

35

36

Appendix

CTC Media Shareholder Structure

37

CTC Media, Inc.

Shareholder of CTC Media

since 2002

Modern Times Group

MTG AB

38%

Number of common shares outstanding

(as of September 30, 2012)

Shareholder of CTC Media

since 2011

Telcrest Investments

Limited

25%

IPO on NASDAQ in June 2006

Free float

37%

Source: U.S. SEC filings, as of September 30 2012

158,160,719

12.6

15.5

12.1

11.2

10.4

4.5

1.91.4

2.41.9 1.9

2.21.9 2.1

1.51.3 1.2

0.9 0.9

0.1

15.8

13.2

11.811.1

10.6

9.0

5.2

3.73.3

2.8 2.72.2 2.3

1.8 1.6 1.5 1.41.2 0.8

0.7

0.1

15.8

TNT ChannelOne

CTC NTV Rossiya 1 Ren-TV Channel 5 Disney* TV-3 Peretz Domashny Rossiya 2 U** TV Center 2x2 MTV Zvezda Rossiya K Rossiya24

Euronews Other

9M 2011

9M 2012

38

Audience Shares In “All 10-45” Most Commercially Attractive Demographic

Audience shares1, %

(1) Source: TNS Russia, CTC Media’s Research Department

(2) Includes audience shares of regional and non-FTA channels

(*) Operated under Semerka brand before 31 December, 2011

(**) Operated under Muz-TV brand before 1 September, 2012

39

Audience Shares In “All 6-54” Demographic



Audience shares1, %


(**) Operated under Muz-TV brand before 1 September, 2012

15.5

12.3

10.4

11.6

10.8

4.6

2.4

1.7

2.4

1.92.2

2.5

2.0

1.4 1.61.2 1.1

1.0 0.8

0.1

16.1

12.011.8

10.6

10.1

9.6

5.4

4.4

3.3

2.82.6 2.5

2.1 2.3

1.61.4 1.3

1.01.1

0.7

0.1

16.2

ChannelOne

NTV TNT Rossiya 1 CTC Ren-TV Channel 5 Disney* TV-3 Peretz Domashny TV Center Rossiya 2 Zvezda U** 2x2 Rossiya K MTV Rossiya 24 Euronews Other

9M 2011

9M 2012

14.4

17.1

15.7

7.6 7.7

4.4

2.72.3

2.9

2.01.7

2.01.7 1.6 1.7

1.10.9 0.8 0.7

0.2

14.314.3

13.8

13.3

7.8

6.9

5.25.0

2.7 2.6 2.5 2.4 2.42.1

1.8 1.7

1.0 0.9 0.8 0.7

0.1

15.2

NTV ChannelOne

Rossiya 1 TNT CTC Ren-Tv Channel 5 Domashny TV Center TV-3 Disney* Rossiya 2 Peretz Zvezda Rossiya K U** Rossiya 24 2x2 MTV Euronews Other

40

Audience Shares In “All 4+” Demographic



Audience shares1, %


9M 2011

9 M 2012

40 (**) Operated under Muz-TV brand before 1 September, 2012

87%

65%

54%

88%

71%

61%

91%

76%

68%

94%

82%

73%

95%

85%80%

41

We Continue to Increase Our Technical Penetration

Note: (1) Technical penetration means the percentage of the population that has the technical ability to receive a particular broadcast signal. Measured annually by TNS Gallup Media in cities with populations of more than 100,000

Technical Penetration1, %

■ We continue to improve the signal

distribution through regional stations

acquisitions and expanding our affiliate

network

■ 50% of technical penetration is provided

by CTC Media’s owned-and-operated

stations and repeater transmitters

2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011

41

FY 2011 Income Statement Highlights

42

(US$ 000’s except per share data)

Twelve Months Ended December 31,

2010

Twelve Months Ended December 31,

2011 Change

as reported comparable-basis, non-

GAAP

as reported

as reported

comparable-basis, non-

GAAP

Total operating revenues $601,285 $680,418 $766,360 27% 13%

Total operating expenses (before non-recurring items)

(394,167) (473,300) (537,293) 36% 14%

Total operating expenses (394,167) (473,300) (643,675) 63% 36%

Adjusted OIBDA 220,854 220,854 246,715 12% 12%

Adjusted OIBDA margin 36.7% 32.5% 32.2%

OIBDA 220,854 220,854 140,334 -36% -36%

OIBDA margin 36.7% 32.5% 18.3%

Adjusted net income attributable to CTC Media, Inc. stockholders

145,731 145,731 152,561 5% 5%

Adjusted diluted earnings per share $0.93 $0.93 $0.97 4% 4%

Net income attributable to CTC Media, Inc. stockholders

145,731 145,731 53,118 -64% -64%

Diluted earnings per share $0.93 $0.93 $0.34 -63% -63%

43

FY 2011 Balance Sheet and Cash Flow Highlights

Consolidated Balance Sheet Highlights Consolidated Cash Flow Highlights

Notes: (1) Working capital = current assets - current liabilities

(2) Net cash position = cash and cash equivalents + short-term investments - total debt

(3) Free cash flow = cash flow from operating activities - acquisitions of property and equipment and intangible assets

(US$ mln)

As of December 31,

2010

As of December 31,

2011

Cash and cash equivalents 59.6 12.3

Short-term investments 117.5 117.2

Total assets 997.7 893.1

including goodwill 244.8 164.4

including broadcasting licenses 163.8 159.4

including programming rights 170.7 199.1

Working capital1 218.9 197.1

Total debt - 16.9

Stockholders’ equity 794.6 697.2

Net cash position2 177.0 112.6

(US$ mln)

Twelve months

ended December

31, 2010

Twelve months

ended December

31, 2011

Cash at beginning of period 84.4 59.6

Net cash provided by operating activities 185.6 115.8

including acquisition of progr. and sublic. rights (250.5) (358.6)

Net cash used in investing activities (130.5) (54.6)

including acquisition of busineses (23.8) (25.0)

including CapEx (29.9) (19.8)

Net cash used in financing activities (79.8) (115.0)

Cash at end of period 59.6 12.3

CapEx (29.9) (19.8)

CapEx as % of total revenue 4.4% 2.6%

Free cash flow3 155.6 96.0

44

Reconciliation of Non-GAAP Measures

Reconciliation of consolidated adjusted OIBDA and other adjusted financial measures to consolidated OIBDA and other

corresponding GAAP financial measures


OIBDATotal operating

expenses

Operating

income (loss)

Income (loss)

before income

tax and non-

controlling

interest

Income tax

expense

Net income

(loss)

attributable to

CTC Media, Inc.

stockholders

Fully diluted

earnings per

share

Three months ended September 30, 2012

Adjusted non-US GAAP results $43,366 ($123,554) $38,455 $41,722 ($14,501) $27,522 $0.17

Impact of impairment loss (82,503) (82,503) (82,503) (82,503) 16,501 (66,002) (0.41)

Results as reported

(under US GAAP, except for OIBDA which is a non-US GAAP

financial measure) ($39,137) ($206,057) ($44,048) ($40,781) $2,000 ($38,480) ($0.24)


OIBDATotal operating

expenses

Operating

income (loss)

Income (loss)

before income

tax and non-

controlling

interest

Income tax

expense

Net income

(loss)

attributable to

CTC Media, Inc.

stockholders

Fully diluted

earnings per

share

Three months ended September 30, 2011

Adjusted non-US GAAP results $ 48,141 ($116,217) $ 43,361 $ 46,988 ($16,237) $ 29,867 $ 0.19


Results as reported


financial measure) $ 0.10 $ 31,298 ($133,060) $ 26,518 $ 30,145 ($12,868) $ 16,393

45

Reconciliation of Non-GAAP Measures

Reconciliation of consolidated adjusted OIBDA and other adjusted financial measures to consolidated OIBDA and other

corresponding GAAP financial measures

(US$ 000’s except per share data) OIBDA

Total

operating

expenses

Operating

income

(loss)

Income (loss)

before income tax

and noncontrolling

interest

Income tax

expenseNet income (loss)

Fully diluted

earnings per

share

Twelve Months Ended December 31, 2011

Adjusted non-US GAAP results $246,716 ($537,293) $ 229,067 $ 243,301 ($83,342) $ 152,561 $ 0.97


Results as reported


financial measure) $ 0.34 $140,334 ($643,675) $ 122,685 $ 136,919 ($76,403) $ 53,118

Three months ended December 31, 2009


Impact of non-cash intangible asset impairment charge (18,739) (18,739) (18,739) (18,739) 3,748 (14,991) (0.10)

Impact of Stock-based compensation expense related to

settlement of litigation against former executive (28,588) (28,588) (28,588) (28,588) - (28,588) (0.18)

Results as reported (under US GAAP, except for OIBDA,

which is a non-GAAP financial measure) $163,929 ($353,638) $152,475 $148,645 ($45,626) $100,389 $0.64

Three months ended December 31, 2008


Impact of non-cash impairment of intangible assets of DTV,

Kz and Moldova (232,683) (232,683) (232,683) (232,683) 30,331 (153,679) (0.97)

Results as reported

(under US GAAP, except for OIBDA) $28,678 ($89,044) $0.14 $47,558 ($327,319) ($139,971) ($158,417)

46

Reconciliation of Non-GAAP Measures (continued)

Reconciliation of consolidated OIBDA margin to consolidated operating income margin

USD mln 2004 2005 2006 2007 2008 2009 2010

Comparable-basis total operating

revenues180,639 273,352 427,091 532,143 729,629 574,107 680,418

Agency commission fees payable to

Video International in connection

with Russian advertising sales

(excluding commissions for regional

advertising sales to local clients)

(25,072) (35,875) (56,257) (60,087) (89,458) (67,994) (79,133)

Total operating revenues 155,567 237,477 370,834 472,056 640,171 506,113 601,285

USD mln Q3 2012 Q3 2011 9M 2012 9M 2011 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 2006 FY 2005 FY 2004

Operating income (loss) (44,048) 26,518 55,045 124,191 122,685 207,118 152,475 34,181 193,061 154,313 90,187 62,559

Add: depreciation and

amortization(4,911) 4,780 15,051 12,925 17,649 13,736 11,454 13,379 27,361 19,651 13,920 7,962

OIBDA (39,137) 31,298 70,096 137,116 140,334 220,854 163,929 47,560 220,422 173,964 104,107 70,521

USD mln Q3 2012 Q3 2011 9M 2012 9M 2011 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 2006 FY 2005 FY 2004

Operating margin -27.2% 16.6% 10.2% 23.4% 16.0% 34.4% 30.1% 5.3% 40.9% 41.6% 38.0% 40.2%

Add: depreciation and

amortization as

percentage of revenue

-3.0% 3.0% 2.8% 2.5% 2.3% 2.3% 2.3% 2.1% 5.8% 5.3% 5.8% 5.1%

OIBDA margin -24.2% 19.6% 13.0% 25.9% 18.3% 36.7% 32.4% 7.4% 46.7% 46.9% 43.8% 45.3%

Reconciliation of consolidated OIBDA to consolidated operating income

Reconciliation of comparable-basis, non-GAAP total operating revenues to total operating revenues

47

Contact Information and Disclaimer

For further information please visit www.ctcmedia.ru or contact:

Ekaterina Ostrova

Director, Corporate Communications and Investor Relations

Tel: +7 (495) 783 3650

Irina Klimova

Senior Manager, Investor Relations E-mail: [email protected]

Tel: +7 (495) 981 0740

DISCLAIMER

The information contained in this presentation, including market data that are attributed to specific sources and have not been independently verified. No representation,

warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or

the opinions contained herein. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for

any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.

The presentation is not an offer of securities for sale in the United States. Neither the presentation nor any copy of it may be taken or transmitted into or distributed in the

United States of America or to any U.S. person within the meaning of Regulation S under the United States Securities Act of 1933, as amended (the “Securities Act”).

This presentation is not a public offer or advertisement of securities in the Russian Federation, and is not an offer, or an invitation to make offers, to purchase any

securities in the Russian Federation.

Certain statements in this presentation that are not based on historical information are "forward-looking statements" within the meaning of the Private Securities Litigation

Reform Act of 1995. Such forward-looking statements include, among others, statement regarding Russian advertising market growth; advertising expenditures in different

segments in Russia, increase of time spent online in Russia, availability of Company’s content on new platforms and others. These statements reflect the Company's

current expectations concerning future results and events. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may

cause the actual results, performance or achievements of CTC Media to be materially different from any future results, performance or achievements expressed or implied

by such forward-looking statements. The potential risks and uncertainties that could cause actual future results to differ from those expressed by forward-looking statements

include, among others, changes in the size of the Russian television advertising market; the continued successful operation of the Company’s own internal sales house

structure; depreciation of the value of the Russian ruble compared to the US dollar; the Company’s ability to deliver audience share, particularly in primetime, to its

advertisers; free-to-air television remaining a significant advertising forum in Russia; and restrictions on foreign involvement in the Russian television business. These and

other risks are described in the "Risk Factors" section of CTC Media's annual report on Form 10-K filed with the SEC on February 28, 2012 and our recently report on Form

10-Q filed with the SEC on August 7, 2012. Other unknown or unpredictable factors could have material adverse effects on CTC Media's future results, performance or

achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed herein may not occur. You are cautioned not to place

undue reliance on these forward-looking statements. CTC Media does not undertake any obligation to publicly update or revise any forward-looking statements because of

new information, future events or otherwise.

http://www.ctcmedia.ru/

mailto:[email protected]

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